Noerr advises TAG on successful placement of 470 million euros in convertible bonds and a repurchase offer for existing convertible bonds

The law firm Noerr has advised TAG Immobilien AG on the successful placement of convertible bonds worth €470 million and the partial repurchase of existing convertible bonds. A Noerr team led by partners and capital markets experts Laurenz Wieneke, Julian Schulze De la Cruz (both Frankfurt) and Stephan Schulz (Hamburg) acted for TAG.

The newly issued convertible bonds with a term until 2026 have a coupon of 0.625%. All of the 4,700 convertible bonds, each with a principal amount of €100,000, were placed exclusively with institutional investors as part of a private placement, excluding the subscription rights of the company’s shareholders. The company has applied for the new convertible bonds to be admitted to trading on the open market at Frankfurt Stock Exchange.

The net proceeds from the issue are to be used to finance acquisitions worth €163 million in Germany and to reduce dilutive effects for the shareholders arising from the outstanding convertible bonds. They will also be used for general company purposes, including further acquisitions in Germany and Poland or to pre-pay off debts.

At the same time, TAG bought back outstanding convertible bonds in an aggregate principal amount of €131 million from its existing €262 million convertible bonds from holders in the context of a reverse bookbuilding process. The Noerr team also represented TAG in this transaction.

Goldman Sachs International and Jefferies acted as joint global coordinators and together with Société Générale as joint bookrunners during the issue of the new convertible bonds. Goldman Sachs International, Jefferies and Société Générale acted as joint dealer managers during the repurchase of the outstanding convertible bonds.

Noerr’s capital markets team regularly advises TAG on capital markets and real estate transactions and provides them with ongoing advice on corporate and capital markets matters. Laurenz Wieneke and Julian Schulze De la Cruz also advised on the successful placement of the TAG’s €262 million convertible bonds in 2017.

Advisors to TAG Immobilien AG: Noerr LLP

Dr Laurenz Wieneke, Dr Julian Schulze De la Cruz (joint lead, both Frankfurt), Dr Stephan Schulz, Juri Stremel (both Hamburg), Thomas Thies (Frankfurt, all Capital Markets)